Energy news in general

peterf83

If the rumours are correct, the new cap will be approximately £2500 (ignoring the £400 grant). I know it's guess work, but that is roughly a 25% increase on the current cap, so unit rates will be roughly:

35.4p kWh for Electric
9.2p kWh for Gas

If we get the £400 grant as expected, and it is paid over six months as was expected, then the 25% higher effectively kicks in at April? Am I missing anything?

The rumour is being reported by Steven Swinford, Times reporter.

https://twitter.com/Steven_Swinford/status/1567109857655881729?s=20&t=R48eW6g3aDbpe4hdw4SRLQ

Malkytheheed

peterf83 said:

If the rumours are correct, the new cap will be approximately £2500 (ignoring the £400 grant). I know it's guess work, but that is roughly a 25% increase on the current cap, so unit rates will be roughly:

35p kWh for Electric
9.2p kWh for Gas

If we get the £400 grant as expected, and it is paid over six months as was expected, then the 25% higher effectively kicks in at April? Am I missing anything?

The rumour is being reported by Steven Swinford, Times reporter.

https://twitter.com/Steven_Swinford/status/1567109857655881729?s=20&t=R48eW6g3aDbpe4hdw4SRLQ

Thats my best estimate too. 

jak22

A fair few people are on fixes above April rates some with exit fees and wont benefit from the discount/freeze being talked about, and would have been looking to the £400.
For those on variable its not too different whether is a full discount down to April prices or its £400 less but also keeping the £400 for everyone - so let's hope this turns out close to what happens.

Ally_E.

How would energy suppliers be able to accommodate everyone's request to end the fix tariff? I'm with octopus and there are no fees, but surely getting in contact with them would be very difficult to ask to be put on the cap. Everyone will be doing the same thing and customer service won't be able to cope. 

sienew

Ally_E. said:

How would energy suppliers be able to accommodate everyone's request to end the fix tariff? I'm with octopus and there are no fees, but surely getting in contact with them would be very difficult to ask to be put on the cap. Everyone will be doing the same thing and customer service won't be able to cope. 

They'll probably get less calls of people changing tariff than they would have if they doubled everyone's payments next month for the October rise.

jak22

Its ought to be automated - can you not change tariff on the website? If the discount is to be around £400 above the April cap and the £400 is kept for all then that will help those on fixed.

Also there's exit fees for some - that'll be something we'll be looking for in the details and might be a reason to contact CS to negotiate if theyre not universally written-off. 

pochase

And the daily update.

Sea_Shell

pochase said:

And the daily update.

I hope that these predictions carry on, regardless of what Gov do to create an artificial cap.

We need to be able to stay abreast of what the "real world" price cap would be.

pochase

I hope so too.

Even if we get a 18 month freeze, the current "guess" is for 13 months upfront, so in 6 months we will see the first guesses what might happen once the freeze ends.

As I have written in another thread I believe that a cap needs to be calculated and published to set a limit to what energy suppliers can bill to the "loan" as a difference between frozen rates and "real" rates.

GingerTim

https://www.theguardian.com/business/2022/sep/01/energy-industry-backs-plan-to-save-businesses-and-homes-up-to-18bn-a-year

At the moment, the way electricity auctions are designed means the price of all electricity is closely pegged to the price of gas.

Under the proposals – first suggested by the UK Energy Research Centre – nuclear power stations and renewable electricity generators would be encouraged to sign up to a new type of contract. These contracts for difference (CfDs) would mean selling their electricity at a lower price, but one that was fixed and guaranteed over a number of years.

I think they were mentioning offering to consumwrs 10-15 year fixed contracts on Radio 4 this morning.